Leasing 101 Muskogee OK

When you lease, you are paying for the use of a vehicle.

Local Companies

Toyota of Muskogee
(918) 687-1234
1330 N Main St
Muskogee, OK
Toy Barn Auto Sales
(918) 683-1661
717 N 41st St E
Muskogee, OK
James Hodge Ford Lincoln Mercury Inc
(918) 584-0514
1200 N Main St
Muskogee, OK
Buckaroo Auto Sales II
(918) 686-6737
3400 W 46th St S
Muskogee, OK
Muskogee Chrysler Jeep Dodge
(918) 686-6035
1711 W Shawnee St
Muskogee, OK
Muskogee Chrysler Jeep Dodge
(918) 684-9900
1711 W Shawnee St
Muskogee, OK
Hodge James Ford Lincoln Mercury
(918) 682-1345
1200 N Main St
Muskogee, OK
Twin Hills Auto Sales & Salvage
(918) 683-6619
6600 W 19th St S
Muskogee, OK
Lake Country Chevrolet & Cadillac
(918) 683-0311
144 W Shawnee St
Muskogee, OK
A & J Auto & Truck Sales
(918) 869-1009
3080 S Woodland Rd
Muskogee, OK

Leasing 101

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2003 Porsche Boxster
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Understanding Leases

When you lease, you are paying for the use of a vehicle. Your payments cover the cost of the vehicle's depreciation over the time you drive it, rather than the purchase price. When the lease is up - typically in two to four years -- you must return the vehicle or purchase it outright. This article will explain what you need to know if you're considering a lease. Before you make your final financing decision, you should also review our articles on loans and the differences between loans and leases.

 

How lease payments are calculated

To calculate a lease payment, the financial institution (the "lessor") estimates the amount the vehicle will depreciate over the lease period, adds the interest being paid by the lessor to finance the car while you drive it and several other fees. Many leases can be started with 'no money down,' although a down payment ensures lower monthly payments.

The Federal Reserve Board recently enacted consumer-friendly legislation that requires dealers to disclose all the key variables of a lease: the interest rate, residual value, length of lease, and size of down payment.

 

The two- to three-year lease

Short term leases work for those who want a brand-new vehicle every few years. The manufacturer covers major maintenance costs for the duration, and you usually pay for required servicing. A major concern: if you terminate this type of lease early, you'll most likely pay severe penalties. Returning the car when the lease is up When a lease expires, you can either buy it, or return it. If you return it you must do the following:

  • Return the vehicle in its original state with no accessories, modifications, or different parts.
  • Make sure the vehicle is in good shape, with no excessive "wear and tear." There are penalties for damage or rough treatment.
  • Meet mileage limits, usually around 12,000 - 15,000 miles. You will be charged anywhere from 10 to 15 cents for every mile you drive over the limit, which can really add up. For example, if you drive 20,000 miles per year for three years on a 12,000 mile/15 cent lease, your penalty would be $3,650.
Continue to Leasing 101 Review from MyRide.com
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Related Local Event
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